Forex News for 6th April, 2023
April 6, 2023 50 Views
- Cleveland Fed President Loretta Mester has stated that the Fed funds rate should go up “somewhat” to bring inflation to 2%, with the Fed funds rate exceeding 5% and the real Fed funds rate staying positive for a while.
- The U.S. crude oil stockpiles fell by 3.7 million barrels in the week ending March 31, exceeding the expected 2.3 million-barrel decline due to strong export and refining demand.
- RBA’s quarterly review acknowledged increased global stability risks and high-interest rates putting pressure on household budgets.
- Germany’s industrial production increased by 2.0% m/m in February, exceeding analysts’ expectations of a 0.1% increase.
- Canada’s trade surplus in February decreased sharply from 1.20B CAD in January to 422M CAD as both imports (-1.3%) and exports (-2.4% m/m) declined. The initial reading of January’s surplus was also revised significantly downward to 1.92B CAD.
- The U.S. goods and services trade deficit widened in February from $68.7B to $70.5B, the largest in four months, due to a larger decrease in exports (-2.7%) than imports (-1.5%).
- Switzerland’s unemployment rate decreased from 2.1% to 2.0% in March, the lowest reading since November.
- According to a recent survey by ISM, the U.S. services sector performed worse than expected in March, with a reading of 51.2, down from February’s 55.1, and lower than the predicted 54.3. Service providers’ prices paid also dropped to their lowest in three years, which supports the Fed’s anti-inflation efforts.
- The ADP report indicated a slowdown in private sector hiring in March, suggesting a deceleration in the economy. Payrolls increased by only 145K, compared to February’s 261K and the projected 210K.
- Despite a lack of direct catalysts, there was an increase in demand for GBP at the start of European session trading. Attention is likely to focus on high and low-tier releases from the U.S. that could highlight recession risks in the U.S. and the rest of the world.